BlackRock’s spot Bitcoin exchange-traded fund (ETF) is closing in on $70 billion in assets under management, highlighting strong institutional demand even as retail investment momentum slows.
Through its iShares Bitcoin Trust (IBIT), the world’s largest asset manager has amassed over $69.7 billion in Bitcoin holdings—accounting for more than 3.25% of the total BTC supply.
IBIT now commands over 54.7% of the U.S. spot Bitcoin ETF market share. Collectively, all U.S. spot Bitcoin ETFs hold around 6.12% of Bitcoin’s fixed 21 million supply, according to data from Dune.
This achievement marks a significant milestone for BlackRock, occurring less than 18 months after the launch of U.S. spot Bitcoin ETFs on January 11, 2024.
The milestone comes as U.S. Bitcoin ETFs continue to see sustained inflows. According to Farside Investors, the market recorded eight consecutive days of net positive flows, with $388 million in Bitcoin added on Wednesday alone.
BlackRock’s IBIT has now entered the ranks of the world’s top 25 largest ETFs by assets under management, currently holding the 23rd spot among both crypto and traditional finance products, according to VettaFi data.
Despite this impressive growth, some analysts note that ETF demand is being tempered by profit-taking and selling pressure from miners.
“A breakout may need a new catalyst or a shift in sentiment,” said Iliya Kalchev, an analyst at Nexo, in a statement to Cointelegraph. He noted that long-dormant wallets are absorbing more Bitcoin than miners are producing, while corporate treasury strategies and accumulation by large investors are helping to counterbalance the selling activity.
Whale Investors Drive Majority of Bitcoin Transactions
On-chain data from Glassnode reveals that high-value transfers are currently dominating activity on the Bitcoin network. While the overall number of transactions has decreased, the average transaction size has surged to $36,200.
According to a Thursday report from Glassnode, the dominance of large-value transfers suggests that major entities continue to actively use the Bitcoin network, even as the total number of transactions declines. “This trend implies that larger entities continue to utilize the Bitcoin network, with the throughput per transaction rising even as overall activity by count declines,” the report stated.
Transactions exceeding $100,000 now make up more than 89% of all network activity, further emphasizing the growing influence of high-value participants, Glassnode added.
While institutional and large investors continue to accumulate, the influx of new retail investors appears to be slowing. Data from CryptoQuant’s Friday report shows that Bitcoin’s short-term holder supply has dropped to 4.5 million BTC—down over 800,000 BTC from 5.3 million on May 27—indicating that “new money is drying up in Bitcoin.”
If investor demand continues to wane, Bitcoin’s next major support could emerge around the $92,000 level—an on-chain realized price for active traders that often serves as a key support zone during bull markets, according to CryptoQuant.
